NEW Sketch: A climate-neutral EU by 2050

Shell has built a scenario looking at what the EU might do to decarbonise energy in the next 30 years. It explores a possible, but highly demanding pathway to help achieve a climate-neutral EU by 2050 – including deployment of clean technologies and shifting choices to support a green economy.

The world must move faster to achieve the goals of the Paris Agreement. Different sectors and different countries will move at different paces. But all sectors and countries must move as fast as possible or face missing the Paris ambitions.

Building on our Sky scenario, we are exploring potential sector, country and regional pathways that could contribute to achieving the Paris ambitions – including the stretch goal of a 1.5°C world.

Following the EU’s adoption of a new European Green Deal, we focused first on the situation in the EU. A climate-neutral EU by 2050 outlines a possible, but highly demanding pathway to decarbonise energy in the EU over the next 30 years to help achieve the EU’s climate ambitions.

Action by developed economies like the EU will be crucial to tackling climate change. Their efforts can act as a beacon for others, while granting more time for developing economies to decarbonise. But the EU is not yet on a trajectory to achieve its goal of net-zero emissions by 2050.

Action already happening must speed up and there must be additional action to reduce emissions more quickly. This includes the mass deployment of clean technologies, shifting consumer and business choices to support a green economy and removing unavoidable emissions through carbon capture, utilisation and storage (CCUS) and natural carbon sinks like reforestation.

This will all need to be complemented by a sectoral approach to speed up action in sectors that are harder to abate – with pioneers needed in government, business and civil society. And there will need to be coherent and credible policy frameworks that are predictable and consistent over time. Finally, it will be important to lay the foundations for a just transition – one that is fair and equitable for all.

We applaud the steps being taken to develop the policy agenda through the European Commission’s Green Deal. Achieving a climate-neutral EU won’t be easy, but we believe that, with widespread support and better alignment of interests, these targets can be achieved.

Find out more about how to decarbonise energy in the EU by following the link below.

Find out more

On March 4, 2020, the EU Commission proposed the European Climate Law that would establish a legally binding target of net-zero greenhouse gas emissions by 2050. Shell strongly supports the proposed European Climate Law and its binding target of net-zero greenhouse gas emissions by 2050. We believe meeting this target will be extremely challenging but possible. This report contains an assessment of what we believe may be needed to decarbonise the energy system in order for the EU to meet the proposed target of net-zero greenhouse gas emissions by 2050. This overview is not intended to be proscriptive and there are other pathways for the EU to follow in reaching the target. It is important to note that the suggestions contained in this report are those to be taken by the EU, and not necessarily Shell. While Shell is supportive of the EU target of net-zero greenhouse gas emissions by 2050, our current business plan is not consistent with the proposed EU target. However, as announced on April 16, 2020, Shell aims to be a net-zero emissions energy business by 2050. Accordingly, we expect that over time, our business plan will change as society and our customers move toward meeting the goals of the Paris Agreement. We believe that the proposed European Climate Law is a significant step in this journey.

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